Budget 2022 Financial News

Finance Minister Nirmala Sitharaman, while presenting the 2022-23 Union Budget on February 1, announced a 30 percent tax on income generated from the transfer of any digital asset.

While this has boosted the morale of the industry, a lot of crypto enthusiasts are wondering if the Finance Minister just made cryptocurrencies legal. According to Purushottam Anand, Founder of blockchain law firm Crypto Legal, taxing income from cryptocurrencies does not necessarily and explicitly legalise cryptocurrencies because income tax is not concerned about the manner or means of acquiring the income.

crypto exchanges and trading platforms cheered the announcements made by Finance Minister Nirmala Sitharaman over the taxation of virtual assets in Union Budget 2022. The Finance Minister announced taxation on gains arising from the sale of virtual assets at a flat rate of 30 per cent in her Budget speech, without any deductions to be allowed on these gains. The government also laid out the detailed provision over tax deducted at source (TDS) at a rate of 1 per cent levied on payments made on transfer of digital assets. Ashish Singhal, Founder and CEO, CoinSwitch and Co-chair Blockchain and Crypto Assets Council (BACC) said, we welcome the government's decision to introduce central bank digital currency (CBDC) to accelerate digitization.

Along with this, she proposed that the Reserve Bank of India (RBI) will introduce its digital currency in the new financial year, which will lead to a more efficient and cheaper currency management system. The government also laid out detailed provision on tax deducted at source (TDS) at a rate of 1 per cent levied on payments made on transfer of digital assets.

Budget 2022: Gift of virtual assets will be taxed at the receiver's end.

The digital rupee move will be give a big boost to economy, Nirmala Sitharaman said.

virtual digital assets at a flat rate of 30 per cent, with no deduction and no provision to set off against any other income. Gift of virtual digital assets is also proposed to be taxed in the hands of the recipient. The government has also proposed a 1 per cent tax deducted at source (TDS) in order to track the transactions. Many see this as a masterstroke that will help the government track every transaction as market players will be liable to deduct taxes and report the transaction to the government. The clarification on the taxation of cryptocurrency was a long pending demand from the industry.

The loss arising from the sale of the virtual assets cannot set off against the any other income, the government cleared. Also, gifting of crypto tokens and the virtual assets would be taxed at the hands of the recipient. A TDS of 1 per cent will also be levied on payment made for transfer, above a monetary threshold, FM said.

RBI) will introduce its digital currency in the new financial year. Digital currency will lead to a more efficient and cheaper currency management system, the Finance Minister said during her budget speech in Parliament. «It is, therefore, proposed to introduce digital rupee using blockchain and other technology to be issued by the Reserve Bank of India starting, 2022-2023,» she added.

Income tax rates will remain unchanged for fiscal year 2022-23, Finance Minister Nirmala Sitharaman announced in the Union Budget today in possibly her shortest Budget speech ever.

While experts believe there are many reasons behind this, the primary among them is that there is yet to be a unilateral consensus inside the government, in the Ministry of Finance, and even in Parliament, they said. The ambiguity on legislation still hangs in the air, according to experts. It was expected that the Economic Survey will have nothing about the crypto industry as the government is still trying to figure out what crypto is and hence how it can impact, said Edul Patel, Co-founder and CEO, Mudrex. Though the industry does not expect the crypto bill to be put on the table in the budget session, we are hopeful that some cat will be out of the FM's bag, he added.

Union Finance Minister Nirmala Sitharaman, while presenting the Budget today, announced a national tele-mental health program will be launched for mental health counselling.

Union Finance Minister Nirmala Sitharaman, while presenting the Budget today, announced a national tele-mental health program will be launched for mental health counselling.

Nikhil Kamath, the co-founder of Zerodha and alternative asset management firm TrueBeacon, is buying gold and lots of it. The fund manager has already accumulated gold to the tune of 15 percent of the fund’s portfolio as he looks to hedge against the rising threat of inflation.

Crypto assets and blockchain are no longer a nascent fad for investors or the government. The number of homegrown startups engaged in the sectors is rising exponentially, despite regulatory uncertainties. The startups and the new age companies associated with the industry are seeking clarity from Finance Minister Nirmala Sitharaman in the upcoming Union Budget over issues like taxation, legislation, exemptions and regulations. They are keen for Sitharaman to acknowledge the potential of the industry and frame some clarity of operations to aid their operations and growth in the future. The Finance Minister will table the Union Budget of February 1.

Nirmala Sitharaman, who will table the Union Budget on February 1. Currently, there is no legislation, act or law to govern, regulate or prohibit dealing in crypto assets in India. Therefore, it is not illegal to sell, purchase, deal or mine cryptocurrencies or set up a cryptocurrency exchange in the country. However, the demands from the industry players, investors and other stakeholders are likely to reach the government, who may finally give heed to clear the clouds of ambiguity and may steer to the way ahead for the future.

Bitcoin was the first cryptocurrency to hit the market in 2009. After that, several cryptocurrencies were launched including Bitcoin Cash, Ripple (XRP), Litecoin, etc. As per an estimate, more than 8,000 cryptocurrencies exist as of January 2022. As per a recent study by Nasscom and WazirX, India's cryptocurrency market has seen exponential growth over the past few years. It is expected that the investment by Indians in cryptocurrency could touch $241 million by 2030. Currently, India has the highest number of crypto owners globally. At present, no legislation governs, regulates, or prohibits dealing in cryptocurrencies in India. Therefore, it is not illegal to sell, purchase, deal or mine cryptocurrencies or set up a cryptocurrency exchange in India. However, considering the risks associated with investment in cryptocurrencies, there was speculation that a bill, set to be introduced in the Winter Session of Parliament, may either ban or regulate cryptocurrencies. However, the bill was not introduced, and it is now expected that the government may take up this bill in the Budget Session. If the government does not prohibit Indians from dealing in cryptocurrencies, the government could introduce a regressive tax regime for cryptocurrencies.

New Delhi: The Centre is unlikely to introduce the much-awaited cryptocurrency bill in the upcoming budget session of Parliament as it wants to hold more discussions and build consensus on the regulatory framework. The government also wants to wait for the pilot launch of the Reserve Bank of India’s digital currency expected in a few months. While the Centre is keen on the bill, it is looking to hold more discussions with stakeholders to firm up a view on the policy, according to officials with knowledge of the matter. “The crypto bill may not be introduced in the budget session. It is a complex subject. This will require more time,” a senior finance ministry official told ET.

crypto bill has taken a back seat. That said, it is highly unlikely that the crypto industry will go unnoticed by the Finance Ministry. Domestic exchanges have some major demands they wish to be acknowledged by the government. Majority of exchanges have demanded clarity about the taxation over the income earned from the crypto assets and GST rules implemented on the trading platforms to ease the operations for all the parties involved.

The Crypto Bill proposes a penalty for violations by individuals as well as corporate bodies.

The much-awaited cryptocurrency bill, which had been scheduled for presentation during parliament's winter session last year, is unlikely to see the light of the day during the budget session as well which will start from January 31.